Strategy Stock Surges 40% as Bitcoin Rally Lifts MSTR

Michael Saylor’s Strategy (MSTR) stock is making a strong comeback, jumping nearly 40% in one month from around $82 to $140. The rally comes as Bitcoin recovered from the $60,000 range to above $80,650, giving a major boost to one of the market’s biggest Bitcoin-linked stocks. 

Strategy’s large BTC holdings have also turned earlier paper losses into billions of unrealized gains.

Bitcoin Rally Gives MSTR a Major Boost

Strategy remains one of the biggest Bitcoin proxy stocks, meaning MSTR often moves more sharply than Bitcoin itself. Therefore, MSTR shares have jumped over 40%, while Bitcoin has recovered roughly 30%, showing its higher sensitivity to BTC price moves.

Strategy held 840,447 BTC at an average cost of $75,385 per Bitcoin. When BTC fell into the low-$60,000 range, the company was facing an estimated $9.5 billion paper loss. 

But after Bitcoin moved above $80,000, that position turned into an estimated $4.2 billion to $4.7 billion unrealized profit.

The size of the treasury also makes MSTR highly sensitive to Bitcoin. Every $1,000 move in BTC changes the value of Strategy’s holdings by roughly $840 million.

Strategy Builds a Bigger Cash Pile

The Bitcoin rally is not the only reason investors are watching MSTR. Strategy also raised $2.01 billion by selling 18.26 million MSTR shares through its ATM program.

Instead of using all the money to buy more Bitcoin, the company placed around $1.59 billion into a new USD cash pool. It also spent $136.4 million to buy back 1.43 million STRC preferred shares, helping reduce its future 12% dividend costs.

MSTR Eyes $1,000 as Bitcoin Targets $500K

Michael Saylor has also highlighted Strategy’s preferred securities and their strong yields. As of 27 August, STRD offered a 13.54% effective yield, while STRC offered 12.24%.

As of now, MSTR is trading around $137.40 after briefly reaching the $140 range. The stock is also moving toward its 200-day moving average, a key level for traders.

The bullish outlook is also growing. Bitcoin Wizard Adam Livingston has suggested that MSTR could reach $1,000 if Bitcoin climbs to $500,000.

However, MSTR remains closely tied to Bitcoin, so a sharp BTC drop could quickly erase its recent gains.